JSE closes lower as Viceroy knocks Capitec and global jitters hit markets
The JSE closed weaker on Tuesday as global concern affected market sentiment, with the local banking sector affected by a report released by Viceroy implicating Capitec Bank in reckless lending and understating its bad loans.The JSE closed below 60,000 points for the first time in almost three weeks.A drop in Naspers’s share price also dragged the market lower, as Chinese internet company Tencent, of which it owned about a third, lost 2% in Hong Kong trade.Despite upbeat GDP numbers released in the US on Friday, and the prospects of only measured interest-rate increases in 2018, investors are increasingly becoming uneasy about a reversal in the bond market.US yields have increased to more than three-year highs, raising borrowing costs. The consequences are difficult to foresee at present but in the past they have led to economic contraction if not managed prudently.Central banks are starting to tighten monetary policy by increasing interest rates, so the era of ultra-cheap money may...
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